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Direct Materials Purchases Budget Lorenzos Frozen Pizza Inc. has determined from its production budget the following estimated production volumes for 12 and 16 frozen pizzas

Direct Materials Purchases Budget

Lorenzos Frozen Pizza Inc. has determined from its production budget the following estimated production volumes for 12" and 16" frozen pizzas for September:

Units
12" Pizza 16" Pizza
Budgeted production volume 12,500 21,800

Three direct materials are used in producing the two types of pizza. The quantities of direct materials expected to be used for each pizza are as follows:

12" Pizza 16" Pizza
Direct materials:
Dough 0.80 lb. per unit 1.50 lbs. per unit
Tomato 0.50 0.70
Cheese 0.70 1.30

In addition, Lorenzos has determined the following information about each material:

Dough Tomato Cheese
Estimated inventory, September 1 490 lbs. 230 lbs. 275 lbs.
Desired inventory, September 30 580 lbs. 185 lbs. 340 lbs.
Price per pound $0.50 $2.20 $2.60

Prepare Septembers direct materials purchases budget for Lorenzos Frozen Pizza Inc. When required, enter unit prices to the nearest cent.

Lorenzos Frozen Pizza Inc.
Direct Materials Purchases Budget
For the Month Ending September 30
Dough Tomato Cheese Total
Units required for production:
12" pizza
16" pizza
Total
Total units to be purchased
Unit price x $ x $ x $
Total direct materials to be purchased $ $ $ $

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